Insider Selling: Zscaler (NASDAQ:ZS) Director Sells 177 Shares

Key Points

• Zscaler director James Beer sold 177 shares at an average price of $192.01, generating approximately $33,986. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, leaving him with 4,030 shares.
• Zscaler shares rose 3.1% to $197.47, while the company’s latest quarterly results exceeded expectations: EPS came in at $1.19 versus $1.09 expected, and revenue increased 24.9% year over year to $898.19 million.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $218.38, though investors remain focused on slowing annual recurring revenue growth and its potential impact on valuation.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) Director James Beer sold 177 shares of the business's stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $192.01, for a total transaction of $33,985.77. Following the completion of the transaction, the director owned 4,030 shares in the company, valued at $773,800.30. The trade was a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zscaler Trading Up 3.1%

Shares of Zscaler stock traded up $5.89 during mid-day trading on Thursday, hitting $197.47. The stock had a trading volume of 3,015,263 shares, compared to its average volume of 3,320,208. The firm has a 50-day moving average of $167.06 and a two-hundred day moving average of $151.50. The firm has a market cap of $32.20 billion, a P/E ratio of -506.33, a price-to-earnings-growth ratio of 23.05 and a beta of 0.95. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to analysts' expectations of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The firm's quarterly revenue was up 24.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts forecast that Zscaler, Inc. will post 0.61 earnings per share for the current year.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Options traders purchased a large volume of Zscaler call options, signaling bullish positioning and expectations for additional share-price strength. Traders Purchase Large Volume of Call Options on Zscaler
• Positive Sentiment: Recent earnings momentum remains supportive: Zscaler exceeded quarterly EPS and revenue estimates, with revenue rising 24.9% year over year. The company is also expanding beyond its traditional seat-based business into data security and security for artificial intelligence. Q2 Earnings Highlights: Zscaler Vs. The Rest of the Cybersecurity Stocks
• Positive Sentiment: Zscaler is being highlighted as a strong momentum stock, which may attract additional technical and style-focused investors as shares trade well above their longer-term moving averages. Why Zscaler Is a Strong Momentum Stock
• Neutral Sentiment: Six company insiders, including the CEO and CFO, reported sales totaling approximately 21,473 shares and $4.1 million. Most sales were conducted under Rule 10b5-1 plans or to cover tax withholding on vested equity, reducing their value as a direct bearish signal. Zscaler Insider Transaction Filing
• Negative Sentiment: Analysts and investors are increasingly focused on decelerating annual recurring revenue growth. Although Zscaler’s broader growth engine remains strong, slower ARR could pressure the valuation of the high-growth cybersecurity stock. Zscaler Growth Engine Is Strong, But Slowing ARR Could Pressure the Stock

Wall Street Analyst Weigh In

A number of research firms have commented on ZS. Morgan Stanley upped their target price on shares of Zscaler from $145.00 to $165.00 and gave the company an "equal weight" rating in a research report on Friday, September 4th. B. Riley Financial decreased their price objective on shares of Zscaler from $225.00 to $215.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. KeyCorp lifted their target price on shares of Zscaler from $185.00 to $210.00 and gave the company an "overweight" rating in a report on Friday, August 21st. Scotiabank reissued an "outperform" rating on shares of Zscaler in a research report on Friday, September 4th. Finally, Piper Sandler upped their price target on Zscaler from $160.00 to $175.00 and gave the stock a "neutral" rating in a research note on Friday, September 4th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $218.38.

Institutional Trading of Zscaler

A number of large investors have recently modified their holdings of ZS. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler in the fourth quarter valued at $30,000. Reflection Asset Management acquired a new position in Zscaler during the 4th quarter worth $40,000. POM Investment Strategies LLC grew its stake in Zscaler by 92.9% during the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock worth $31,000 after purchasing an additional 105 shares in the last quarter. Western Wealth Management LLC purchased a new stake in Zscaler during the 1st quarter worth about $33,000. Finally, Creative Financial Designs Inc. ADV increased its holdings in Zscaler by 26,100.0% during the 4th quarter. Creative Financial Designs Inc. ADV now owns 262 shares of the company's stock worth $59,000 after purchasing an additional 261 shares during the period. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Company Profile

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.

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